Credit Information

Do you feel that you have too many credit cards? Are some of them lying idle with you? The correct step is to close these credit cards, but closing credit cards impact your credit score. It impacts the “credit utilization” ratio i.e. credit used against the available limit. Credit utilization ratio is one of the factors based on which credit scores are calculated. Before closing that credit card understand if it is the correct move for you. Consider the following- Spendthrift…

When you take your vows and promise to be true in good times and in bad, do you end up saying “I do” to your spouse’s bad credit history as well?   Marriage is a union of two souls and from a financial standpoint, it means saving for the future, buying a dream home or planning for your child’s education. Marriage can also have an impact on your credit score. Whilst, your “marital status” as such does not impact your credit…

Most of us have certainly wished to have won a lottery…an easy ticket to fulfil many dreams….isn’t it? But rarely do we think how we should use this prize money! Planning and prioritizing is important to ensure that the prize money is put to the best use. Listed below are simple and easy ways in which should prioritize and use this prize money. Track your income and expenses Continue to keep track of your income and expenses. Remember the money won in…

My secretary the other day requested for advice – she was getting calls from recovery agents saying and threatening that if she did not pay her outstanding dues on her 5 credit cards, her name would be reported to CIBIL and she would never again get a loan or a credit card in her life!  In my mind I am thinking – wow, what did I help build! An organization - a concept that has replaced the proverbial hockey stick…

The pandemic has brought instability and uncertainties in the economy and therefore it has become important for us to manage our finances more systematically to face any upcoming uncertainties.  Follow these simple 6 steps and you will always have no debt stress or find yourself in a debt trap.   Step 1…Know what you OWE   To make sure that you don’t miss your payments and to maintain good credit history and a good credit score, figure out exactly how much do you owe,…

The power of plastic money – ‘Buy now, pay later’ has become a modern day convenience, but the history of the earliest credit cards dates back to the early 1900s. You've read and seen this in books or movies depicting the society where the local general store would extend credit to regular customers, and department stores in the cities would do the same. Though we have come a long way from local general stores to online shopping, but one thing…

Way back in the late 1960’s, Neil Amstrong immortalised a phrase which effectively said “One small step for man is one large step for mankind”, as he became the first man to walk on the moon surface.  We have come a long way since then and the day is not far when space tourism will become a reality. It has been a journey and the world has learnt along the way.  Similarly, ways to good credit health are no…

In these times of stiff competition among different lenders, it is observed that there has always been an effort made by each of them to make a difference. An interest rate differential is one such example we could use. This factor surely plays an important role in your Equated Monthly Instalments (EMI) payments and your choice of lender.   As there is a difference in the interest rates offered by different lenders, an existing borrower is lured to shift to a lender who quotes a lower interest rate than what she…

In today’s age and time everyone holds a credit card; well almost everyone! Whilst it is a convenient option for many of us….strangely it is also a “cool” option for few! Flaunting a wallet with different credit cards in a party or at a shopping mall is definitely looked upon as “cool”.   But how many credit cards should you hold? How many credit cards make you “cool”?   “One size fits all” solution does not work here. So a working professional can hold 2 cards and a fresh MBA could hold 1 card or…

Your credit score – this 3 digits number can make or break your financial dreams. This number is a reflection of your past payment behaviour.   A credit score has gained importance in the recent years. The lending institutions evaluate your credit worthiness based on your credit score, which helps the lending institution to estimate the likelihood of repayment of a credit facility based on your past pattern of credit usage and loan repayment behaviour.  So higher the score, higher the confidence the lending institution would have in you and hence…